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Agreement to build and lease

January 24, 2013 by agribusiness in General agreements with 0 Comments
An agreement to build and lease is a specific agreement under which the landlord agrees into an arrangement to build the premises specifically for the tenant according to his requirements and once the construction is over the building is leased out to the tenant.

In other words the premise is custom built according to needs of the tenant and all cost of construction is borne by the landlord only but after the tenant occupies the building the responsibility to maintain the premise lies solely with him. The rent payable by the tenant is decided in accordance with the cost incurred in building and the financing cost of the project and is subject to a percentage increment on yearly basis. The agreement to build and lease generally consist of terms and conditions such as construction plan of the building, the improvement plan, the lease amount, the time period for lease, cost estimates, final pricing, the landlord overheads and profit and rights of both the parties involved.

Agreement to build and lease

Agreement to build and lease

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